SIMPAR (SIMH3) Q4 2025 earnings summary

Executive summary

• Achieved record net revenue of R$47.8 billion in 2025 (+7% y/y), EBITDA of R$12.8 billion (+24% y/y), and net income of R$213 million (+127% y/y), reflecting operational efficiency and value extraction from prior investments.

• Monetized Ciclus Rio for R$1.8 billion, generating a 27% IRR and doubling invested capital, supporting deleveraging and strategic portfolio management.

• Lowest leverage in 15 years at 3.0x Net Debt/EBITDA, with strong liquidity and extended debt maturities.

• Significant operational efficiency gains, with EBITDA per employee up 24% and net CapEx down 35% y/y, achieving the lowest net CapEx in five years.

• Strategic focus on value extraction, cost reduction, and operational efficiency after major investments in 2022–2024.

Financial highlights

• Net revenue in 2025 was R$43.5 billion (+7% y/y); 4Q25 net revenue reached R$11.3 billion (+5.9% y/y).

• EBITDA in 2025 was R$12.8 billion (+24% y/y), with a margin of 29.6%; 4Q25 EBITDA was R$4.1 billion (+55.4% y/y, 36.4% margin).

• Net income for 2025 was R$213 million (vs. R$94 million in 2024); 4Q25 net income was R$543 million, reversing prior year losses.

• Free cash flow after growth was R$4.2 billion in 2025, reversing a negative R$2.4 billion in 2024.

• Net CapEx dropped 35% y/y to R$6.6 billion, with EBITDA/Net CapEx ratio at 1.9x.

Outlook and guidance

• Focus remains on operational efficiency, cost reduction, and extracting value from existing assets.

• 2026 guidance: VAMOS expects gross revenue from asset sales of R$1.6–1.8 billion, net CapEx R$1.2–1.9 billion, and EBITDA R$3.75–4.0 billion; CS Portos targets EBITDA of R$180–250 million.

• Automob's integration and optimization phase to drive value extraction, with full impact expected by 2027.

• CS Infra to contribute to EBITDA from 2026 as new concessions ramp up.